The inflation rate for the single currency fell in March to 6,9% over a year, according to estimates published Friday by Eurostat. The drop is significant after the 8.5% recorded in February.
Energy, one of the main drivers of soaring prices, is stabilizing for the first time in several months. The increase over one year goes from 13.7% to 0.9% in March. Gas prices have been falling steadily since the start of the year.
However, food inflation continues to rise. It passes in March to 15,4% against 15% the previous month.
Of the 20 member countries that use the single currency, six remain with a double-digit rate: Latvia (17.3%), Estonia (15.6%), Lithuania (15.2%), Slovakia (14.8%), Croatia (10.5%) and Slovenia (10.4%).
Luxembourg currently enjoys the lowest inflation rate in the Eurozone at 3%, while in Spain it has almost halved, from 6% to 3.1% in March.
Germany, the EU’s largest economy, also saw a decline, falling from 9.3% to 7.8% on an annual basis. France’s inflation rate is estimated at 6.6%, while Italy’s was 8.2% in March.
“Inflation fell sharply in the euro zone. Good news“, says Paolo Gentiloni, European Commissioner in charge of the Economy. “But core inflation remains elevated, driven by food and services“.